2026 Virtual Cracker Barrel: Industrial Growth, Tax Reform, and the Future of Watertown

Northeast Radio SD News - Watertown, SD - In Northeast Radio SD’s first-ever Virtual Cracker Barrel session, District 4 and 5 legislators met Tuesday to outline the agenda for the 101st South Dakota Legislative Session. The delegation addressed a spectrum of regional concerns, from a $400-million data center proposal and the critical state of rural EMS to a contentious debate over property tax relief.

Economic Development and the Data Center Push

A centerpiece of the discussion was House Bill 1005, introduced by District 4 Representative Kent Roe. The bill aims to modernize South Dakota’s tax policy to attract “hyperscaler” data centers, putting the state on a level playing field with neighbors like Nebraska and North Dakota.

Roe highlighted a potential project in Deuel County that could add $430 million to the local tax base and create 200 high-paying jobs. “It brings us into the national spotlight because we have excess and surplus power,” Roe said. While District 4 Representative Dylan Jordan noted some local concerns about the “way of life” in smaller towns like Toronto and Astoria, District 4 Senator Stephanie Sauder and District 5 Senator Glen Vilhauer emphasized that such industrial growth is important for potential property tax relief.

The Property Tax and Housing Puzzle

The legislators grappled with the complexity of property tax reform, with Vilhauer noting that while some areas of the state are in crisis, the issue is not uniform across the state. District 5 Representative Matt Roby cautioned against the total abolition of property taxes, arguing that it could strip local control from schools and cities while allowing large private equity firms to buy up local homes at lower carrying costs.

On housing, the delegation debated the fate of roughly $60 million in remaining state loan funds. While some proposed diverting these funds to airport improvements in Sioux Falls and Rapid City, Vilhauer and District 5 Representative Josephine Garcia advocated keeping the funds dedicated to affordable housing and infrastructure, noting that the “loan” portion of the state’s housing program needs more time to succeed.

Healthcare and Emergency Services

South Dakota is expected to receive at least $500 million over five years for rural healthcare. Garcia and Vilhauer stressed that a portion of these funds must be directed toward the state’s struggling Emergency Medical Services (EMS). Vilhauer warned that some rural areas are reaching a “scary” point where 911 calls might go unanswered due to a lack of volunteer staff and funding.

A Call for Civil Engagement

As the session begins in Pierre, lawmakers urged residents to remain active. Roby and Sauder encouraged constituents to send personalized, handwritten, or unique emails rather than automated form letters, noting that these are far more impactful.

“I hope we can be kind,” Garcia said in her closing remarks. “At the end of the day, we want to do what’s best for South Dakota and see it grow and protect it.”

Find more information at https://sdlegislature.gov/